The Department of Budget and Management (DBM) urged leaders of local government units (LGU) to strengthen the capacity of budget and procurement officers on fiscal management to take advantage of the new bottom-up budgeting (BuB) scheme that allows local communities to directly handle spending.
Budget Secretary Florencio B. Abad said that among the measures of the Aquino administration to address underspending include “direct release of funds to LGUs for location-specific projects.” But the complete release of funds to LGUs, according to Abad, remains dependent on their compliance to their capacity to manage funds efficiently.
He added that the DBM is coordinating with various key spending agencies and LGUs to improve public financial management.
“Public Finance Management Capacity is a condition for bottom-up budgeting,” said Abad, citing direct release of funds to LGUs will include allocation for road projects.
The DBM, Abad said, has spearheaded a thorough review of the implementing rules and regulations of the country’s procurement law that would enable agencies, departments and LGUs to utilize allocation through efficient biddings and awarding of contracts.
Among the measures to address underspending include training of procurement officers in agencies and LGUs on the new systems in public procurement.
Abad earlier said more than 95 percent of the budget allocation for 2015 have been released by May 31 this year to allow agencies and LGUs to speed up procurement procedures.
He said enough measures have been enacted to make budget execution more efficient to help ramp up public disbursements.
“When government departments and agencies don’t spend efficiently, we won’t just be looking at slower economic growth. We’re also looking at potential delays in the delivery of public goods and services,” Abad said.